On October 17, 2023, The Goldman Sachs Group Inc (GS, Financial) released its third-quarter earnings report for the period ending September 30, 2023. The company reported net revenues of $11.82 billion and net earnings of $2.06 billion for the third quarter. The net revenues for the first nine months of 2023 were $34.94 billion, and net earnings were $6.51 billion.
Financial Performance
The Goldman Sachs Group Inc (GS, Financial) reported diluted earnings per common share (EPS) of $5.47 for the third quarter of 2023, compared with $8.25 for the third quarter of 2022 and $3.08 for the second quarter of 2023. The EPS for the first nine months of 2023 was $17.39, compared with $26.71 for the first nine months of 2022. The company's annualized return on average common shareholders’ equity (ROE) was 7.1% for the third quarter of 2023 and 7.6% for the first nine months of 2023. The annualized return on average tangible common shareholders’ equity (ROTE) was 7.7% for the third quarter of 2023 and 8.2% for the first nine months of 2023.
Revenue Breakdown
Net revenues for the third quarter of 2023 were essentially unchanged compared with the third quarter of 2022 and were 8% higher than the second quarter of 2023. The net revenues compared with the third quarter of 2022 reflected significantly lower net revenues in Asset & Wealth Management, offset by higher net revenues in Global Banking & Markets and Platform Solutions.
CEO's Commentary
David Solomon, Chairman and Chief Executive Officer, commented on the company's performance, stating,
We continue to make significant progress executing on our strategic priorities and were confident that the work we're doing now provides us a much stronger platform for 2024. I also expect a continued recovery in both capital markets and strategic activity if conditions remain conducive. As the leader in M&A advisory and equity underwriting, a resurgence in activity will undoubtedly be a tailwind for Goldman Sachs."
Looking Ahead
The Goldman Sachs Group Inc (GS, Financial) remains a leading global financial institution, delivering a broad range of financial services to a large and diversified client base. The company's strategic priorities and continued recovery in capital markets and strategic activity are expected to provide a stronger platform for 2024.
